The Drawback of the Constant Gross-Margin Percentage NRV Method in Joint

question 149

Multiple Choice

The drawback of the constant gross-margin percentage NRV method in joint costing is that it ________.

• A) recognizes that profits are derived from the costs incurred after split-off
• B) assumes the profit margin to be identical across all products
• C) attempts to approximate the sales values at split-off by subtracting from final selling prices the separable costs incurred after the split-off point
• D) ignores the separable costs of further processing

---

Definitions:

Deceptive Advertisements

False or misleading claims made in advertising to persuade consumers to buy a product or service.

Civil Suits

Legal proceedings initiated by individuals or entities seeking to resolve non-criminal disputes or claims against others.

Damages

A monetary compensation awarded by a court to a person who has suffered loss or harm due to the unlawful act or negligence of another.

Equal Credit Opportunity Act

A U.S. federal law aimed at ensuring fair access to credit for all individuals, prohibiting discrimination based on various factors.